ST. JOHN'S, N.L. - Newfoundland and Labrador Premier Kathy Dunderdale says she hopes the federal government provides a loan guarantee by the end of the summer to develop the proposed Lower Churchill hydroelectric project.
During the federal election campaign, Prime Minister Stephen Harper promised to provide a loan guarantee or equivalent financial support for the $6.2-billion project at Muskrat Falls in Labrador.
The promise has raised the ire of the Quebec government, which says any federal support would amount to an unfair subsidy.
Dunderdale said Monday that she and her staff are in continual contact with Ottawa and that she would like a positive response on the loan guarantee soon.
She faces an election in October and the Lower Churchill project is shaping up to be a key election issue in her province.
A year ago, Newfoundland and Nova Scotia made a joint request to Ottawa for a $375-million loan guarantee to help build a subsea power cable that would transmit Lower Churchill's energy between the two provinces.
